Crypto Academy

What is stacking?

What is stacking?

4 min reading

Cryptocurrency and savings account. Interesting discovery!

What is stacking

What is stacking?

If you have an overview of what a savings account is and how it works, you should be able to understand what cryptocurrency stacking is. Stacking is the act of stacking or blocking  funds in a cryptocurrency wallet for the sole purpose of helping keep the proof-of-stake blockchain system running. This activity is somewhat similar to crypto mining because it helps the network reach consensus and also rewards the users who participate in it. So you see this is a win-win situation. Before we get into the full stacking process, we need to understand what Proof of Stake (PoS) is.

This is one of the two main ways to achieve consensus on the blockchain. Simply put, this is one of the ways to validate the blockchain. When a transaction is sent to the network, the nodes on the network validate the transaction to ensure that the person has enough tokens or that it will not damage the network. If this has been verified and approved, transactions are added to the blockchain. Proof of Stake originated during the proof of work algorithm, and it is seen as an energy-saving approach to reach consensus. Proof of Stake offers many benefits, to the extent that several major blockchains have switched to Proof of Stake.

What is the stacking process?

It simply means that the nodes put their coins or tokens into the game to take part in the network by creating a block. The network’s reward is proportional to the size of the invested bet. However, some proof of stake allows anyone to take part in the process if a sufficient stake has been invested.

Stacking against savings

Today, when a person wants to make a profit on his investment, he quickly thinks about a savings account, which is offered by most banks and which offers a regular interest rate on his savings.  However, depending on your country, these savings accounts cannot exceed 2% of actual savings, and they never exceed inflation rates in most countries. Banks offer this percentage because your savings are used to generate their own income. 

For example, they can lend or invest your money. For comparison, with stacking, you can get up to 5% of the invested amount.

To start stacking, you need to have free funds to buy coins and the ability to freeze them on a special deposit smart contract for an extended period of time.  For example, for stacking DASH you need 1,000 coins, and for Ethereum 2.0, you will need at least 32 ETH. The minimum number of coins to participate is determined by each cryptocurrency individually. But the more coins you allocate for stacking, the higher your chances of creating a new block in the network. Unlike mining, crypto-stacking does not require large expenditures on equipment (ASICs). Once you have added coins to your wallet on the PoS algorithm, then you need to wait for the blocks to appear, on average it is 1-2 days. The PoS protocol may include different algorithms to select a node to add a block. Each cryptocurrency uses its own methods and rules, which, according to the developers, best support their network. People with different capital can participate in stacking. It is also necessary to pledge some amount of coins for collateral. It is because of these complications that today’s stacking through providers (who perform all technical actions for the user) is so popular and even more so is fixed stacking, for which you just need to keep purchased assets in the wallet of the exchange.

Plus, if we compare the time spent on each investment method, it is clear that stacking is the fastest method. The cryptocurrency process usually takes a few seconds, while sometimes it takes several days to open a savings account with a bank, which of course can still be declined. These comparisons allow us to see that the rate of cryptocurrency is much simpler and more profitable.

Conclusions

Satoshi Nakomoto

Satoshi Nakomoto

5 min reading

Find out who Satoshi Nakamoto is and what role he played in Bitcoin creation.

Who is Satoshi Nakamoto

Who Is Satoshi Nakomoto?

Bitcoin is the most discussed cryptocurrency, but the details of its creation are still unknown. So who is behind the emergence of Bitcoin? It is high time to get the answer.

Satoshi Nakamoto is the pseudonym of one person or group of people who developed Bitcoin and created the first version of the software where it was implemented. For a very long time, attempts were made to reveal the real identity or group of people behind this name, but none of them were successful. Information about this person has been collected for eight years. But it was not possible to learn something from the biography of Nakamoto. No one knows what language Nakamoto speaks since childhood – Japanese or English, his age is unknown, etc. Then, in 2009, Nakamoto indicated the age-37 years. This means that the man who revolutionized the global financial system was born in 1972. According to another version published in the profile of the off-bank P2P fund, Nakamoto was born on April 5, 1975, in Japan.

Bitcoin Creation

First of all, the history of bitcoin began during the cryptographic research of the XX century. The logical conclusion of the research was the Nakamoto invention. He wrote a paper that focuses on the study of digital currency. The author called this work the “Bitcoin White Paper”.

Bitcoin originated in 2007 when Satoshi Nakamoto wrote the Bitcoin code. The following year, a white paper was already released through an online domain, Bitcoin.org. Satoshi’s article describes how Bitcoin works using computer networks. Moreover, the goal was to eliminate third parties while executing digital transactions. In 2009, BTC was released for people worldwide, and it was the beginning of bitcoin history. The first bitcoin miner was Gal Finney who then mined ten Bitcoins and became one of the earliest Bitcoin users. Interesting to know that Wei Dai, Nick Szabo, and Gavin Andresen are also bitcoin-enthusiasts.

How much Bitcoin does Satoshi Nakamoto own?

It is said that the creator of Bitcoin  – Satoshi Nakamoto – owns 1,125,150 BTC (about $10.9 billion). This is the conclusion reached by analysts of the Whale Alert project, which is popular in the crypto community in their research. Whale Alert specialists built their analysis based on the analyst Sergio Dimian Lerner’s “extra nonce” method. According to Sergio Dimian Lerner, the operations of Satoshi Nakamoto can be distinguished from the general number by using a pattern that he called “Patoshi”. As a result, analysts concluded that 22,503 of the first 54,316 blocks were mined by the creator of Bitcoin. According to Whale Alert, Satoshi Nakamoto continued to mine BTC due to the risks associated with a possible 51% attack on the cryptocurrency network in the early periods of its development.

Why Satoshi Nakamoto chose anonymity 

The most important argument was that Satoshi decided not to “be in the public eye” as a precaution. Bitcoin technology has taken root in cyberpunk!  Cyberpunks are activists who advocate for the use of cryptography, as they promote social and political change. It is believed that Satoshi was wary of becoming vulnerable to attacks from all sides. He was quite far-sighted and foresaw it. Thus, he decided to remain anonymous for his benefit.

However, we can conclude that the identity of the creator may not be as significant as exploring the Bitcoin future. The blockchain is considered to have a huge potential in many areas of human activity. Critics argue that the growth potential can overload the system. Hence, this will not justify the reason for Bitcoin’s development, namely the decentralization of the currency.

In general, even without knowing who Satoshi Nakamoto is, we are happy to use the results of his technology, and even other Blockchain projects have taken their beginning from it.

Conclusions

Maturity of the crypto industry

Maturity of the crypto industry

4 min reading

Many people wonder if the crypto industry is mature? Let's find out in this article.

Is the crypto industry mature

Is the crypto industry mature?

In 2020, the world experienced one of the biggest crises in the last 50 years, but cryptocurrency market players have seen the increase and confirmed the prospects for crypto. Bitcoin once again reached record highs, so virtual money is only gaining momentum and preparing to become a significant part of the global economy at the level of ordinary currencies.

Introduction

Based on the market capitalization of cryptocurrencies, leading cryptocurrencies have been identified – they currently account for 80% of the global cryptocurrency market. These include Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, and NEM. By now, the markets have also established key market infrastructure players, namely miners, full nodes, exchanges, wallets, and payment companies, that formed the foundation of the cryptocurrency market and now contribute to the development of the market of almost every cryptocurrency.

Crypto infrastructure

Each of the leading cryptocurrencies offers an analysis of main market indicators: market share and its change over the year, the degree of influence of cryptocurrency on the general market of cryptocurrencies, price dynamics, and their volatility. The infrastructure of the market of each cryptocurrency is assessed based on indicators of infrastructure reliability and its trading opportunities. The study showed high growth rates of bitcoin and a number of significant altcoins over the past year, which had a positive effect on the state of the general cryptocurrency market. Almost every cryptocurrency has shown positive trends. Bitcoin and Ethereum are financially risky in terms of volatility but still very attractive for millions of users. In addition, Ethereum has the most reliable infrastructure, and bitcoin is the most equipped with exchanges and wallets. Cardano currency showed the highest growth rates in a short period of time.

Why does the crypto industry grow?

In general, these phenomena are positive predictors for the cryptocurrency industry. The capitalization of the cryptocurrency market is growing steadily. Since the beginning of the first cryptocurrency, the global crypto market has grown significantly, and many participants are looking for benefits in this industry. The scope of their application ranges from fast and safe completion of payments to exchange operations, investments, the realization of smart contracts and the decentralized computing platform, and many other things. 

The scale of growth of the cryptocurrency industry does not go unnoticed by either government agencies or commercial or ordinary users. One of the pressing issues is to define what the cryptocurrency industry is in its entirety and how it fits into the existing framework of the world system.

Cryptocurrency markets are characterized by high volatility, so the choice of optimal risk management strategy is noticeably complicated, as, after all, the range of market risks is quite broad – from insignificant to catastrophic. This choice depends on many factors, including the ability to anticipate future changes in cryptocurrency prices on the market. Market participants must determine for themselves the level of risk they are willing to take a profit, whereas success in achieving this goal depends to a large extent on a management strategy.

The global cryptocurrency market has a great future. The latter offers high growth rates of bitcoin and a number of significant altcoins, the growing number of organizations and companies willing to use cryptocurrencies in their activities, and the growing popularity of cryptocurrencies among ordinary users. All these phenomena are positive predictors for the cryptocurrency industry.

Conclusions

Crypto value

Crypto value

4 min reading

Discover the reasons for the bitcoin value in only one click on this article.

Do cryptos have real value_

Do cryptos have real value?

Anyone who has been involved in cryptocurrency for long enough should know what the value of cryptocurrency is or why Bitcoin is valuable. These questions are not difficult to answer, as it is obvious that Bitcoin and other cryptocurrencies have value.

Cryptocurrency is believed to start a revolution in the financial sector and become a new type of money. Like any other currency or account unit, crypto-asset has value only because people believe it has value and it is profitable to exchange.

As you know, some money is backed by gold or other precious metals. Others are not supported by anything. Currencies have value because people use them for exchanging and making transactions.

The relationship between Bitcoin’s advantages and utility determines its worth. The value should not be confused with price, which is the monetary value of Bitcoin. Besides, many aspects of cryptocurrency contribute to its usefulness and create benefits that not only outweigh traditional fiat money but also support the ecosystem of the crypto world.

The Bitcoin blockchain, being a decentralized network, allows the use of technological innovation. The software model of the Bitcoin network, having open-source code, facilitates the additions and improvements creation based on the existing network. 

The importance of Bitcoin’s function as a payment system, as well as the ability to use a digital currency to store value and record data, is the reason why Bitcoin is gaining popularity around the world. So what is the real value of Bitcoin? Let’s analyze it in detail.

What is the value of Bitcoin?

There are several reasons why Bitcoin has value. First, it cannot be attached. When you put cash in the bank, no one tells you that you are handing over control of your money to the bank and the government. Second, Bitcoin can be sent anywhere in the world. It is similar to money transfers people use around the world without any borders. It takes 10 minutes to validate the transaction and deliver the money.

Third, Bitcoin is a deflationary currency. Against the background of monetary inflation, Bitcoin is a solid asset, compared with gold. No central bank or meddlesome economist can issue more Bitcoins than is presupposed by white paper. Scarcity is believed to be a crucial factor in determining currency worth, and Bitcoin is one of the world’s most scarce assets.

Nevertheless, some experts are adamant about the value of cryptocurrencies being zero, explaining it in the following way: the cryptocurrency does not produce anything and has no fundamental value. According to them, it’s just an entry in a distributed registry, and people are just hoping that the crypto will be bought in the future. It is also believed that Bitcoin is used in the illegal market for some criminal purposes compared with money smuggling years ago.

However, the value of digital money, or cryptocurrencies, is characterized by mathematical accuracy, automation, reliability, and error-free operation of the blockchain technology as a database that stores information about all transactions. The crypto-currency phenomenon is an innovation in the financial sector of the economy and is likely to deal with many challenges related to money.

Conclusions

Investing $100 in Bitcoin

Investing $100 in Bitcoin

5 min reading

Want to invest only $100 in Bitcoin but you are not sure if it’s possible to do this? It’s that time to find out the answer.

Can I invest only 100 in bitcoin_

Can you invest only $100 in Bitcoin?

Today, many newcomers on the crypto market have a lot of questions about the crypto industry. Many people don’t know how much money they should have to start trading cryptocurrency. There are doubts and fears around the amount of money to trade and the platform to start. But the most difficult task is not to lose the starting capital. All in all, is it possible to invest $100 in bitcoin and gain a profit? Let’s figure it out in this article.

Features of the crypto market

First of all, keep in mind that trading is a quite risky way of earning money, requiring special knowledge and skills. Trading crypto-currency can be dangerous for newbies without a special knowledge-based approach as crypto-assets are highly volatile. On the other hand, high fluctuations in the value of digital money not only allow users to quickly lose capital but also multiply it.

Spot market

Many financial experts advise newbies to begin their cryptocurrency trading experience on the spot market. This will provide you with the opportunity to become acquainted with technical analysis, test different trading strategies without exposing your funds to high risks. Furthermore, experts believe that you should invest the sum of money you are ready to lose and do not start with a lot of cash. At the same time, your investments should be enough to trade for a long time in order to be able to improve your trading skills and discover how to operate on the crypto-currency market. 

How to start?

It is believed that $100-200 is enough to explore the market’s functioning features. At the beginning of your trading experience, running after the big profits is a bad idea as you will just waste your energy and desire to trade which will probably shatter your psychological stability. At the initial stage, the main task should be to discover the approach to trading and a trading strategy, profitable enough to bring you vast amounts in the future. 

DCA strategy

Finding the perfect moment to buy bitcoin is literally impossible. Whatever price a trader buys an asset at, it is very likely to fall before entering a long-term growth phase. Therefore, some investors use an “averaging” strategy. This strategy works like this: the user divides his capital into several parts and buys bitcoins with them over time. This way, if the price of the asset falls, you can use this as an opportunity and buy more coins. In this case, the average purchase price of BTC will go down. The best option is to invest $10 in BTC every day. 

At the first successful experience, the average return should be analyzed as the average return obtained while working with a small deposit. Experts also recommend setting a goal that should be achieved in a year or a month. For example, if the yield is 10% per month, the deposit must be $10,000 to receive $1000. 

Theoretically, it would be perfect to trade with an income of 10%, as the income will grow depending on the deposit. But there are no perfect situations in trading crypto-currency, so you should stick to your chosen strategy for long distances.

As experts explain, one of the main crypto market advantages is that users do not need a large start-up capital to start with. In their opinion, a novice trader will only need 100 dollars to buy some crypto on the stock exchange and start trading using the chosen strategy. On the one hand, this amount is sufficient to buy crypto-currency, and on the other hand – not so large as to be afraid to lose it. People must realize that without experience, knowledge, and practice, they may not succeed.

The amount for cryptocurrency trading should be carefully considered to avoid risks without using leverage. Let’s give an example – $13,7 thousand is enough to trade Bitcoin “1 to 1”, or about $400 at the current exchange rate to buy ETH. The more funds in the account, the more comfortable and safer trading will be, and the fewer funds, the greater the amount of borrowing is needed to buy or sell digital assets.

However, trading can be profitable and effective for the experienced trader, having some knowledge in the field of financial analysis. But a newbie needs to learn how to control risks and avoid losses in order to reach a desirable income. Therefore, the initial amount of funds should be sufficient and correlate with the current value of the assets that the investor is going to trade.

Conclusions

All Time High / All Time Low

All-Time High/All-Time Low

5 min reading

Have you ever heard about ATH (All-Time High) / ATL (All-Time Low)?

ATL (All-Time Low)

ATH (All-Time High) / ATL (All-Time Low)

The crypto market is a platform with a lot to learn and explore, even if you are not investing yet. After gaining an understanding of bullish and bearish patterns (candlesticks), as well as ascending and descending lines, we will now shed light on All-Time High and All-Time Low in the crypto market. 

All-Time High

ATH refers to the highest price an asset has reached since its inception. It is often quoted globally in financial assets showing the theoretical potential of said asset. However, there is no guarantee that it will remain at this level forever. In the case of crypto-currencies, however, a coin is said to be at its ATH when it has surpassed its previous price peak, thus finding new support at a higher level. In addition, the ATH value represents the maximum price at which a particular asset could be sold. It also represents the maximum price another trader was willing to pay for that asset over a certain period of time. However, it is possible for an ATH to be derived not from the entire asset but from a fraction of it.

ATH and bull market

During the bull run at the end of 2017, many crypto-currencies set new all-time records. Note that each crypto-currency exchange has a different All-Time High for crypto-currency. For example, at the height of a bull run, before the big drop, a crypto-currency trader can buy 0.1BTC at $5,000. Proportionally, this will give bitcoin a new ATH at $50,000 per unit of BTC, although only 0.1BTC was traded at that price. 

All-Time Low

The concept of ATH can also be applied to market cap stocks. The opposite of All-Time High is All-Time Low (ATL) which refers to the lowest price at which an asset has been traded, and this is recorded after an asset has been listed and begins trading on an exchange. Unlike stocks that are growing steadily, stocks that have reached their all-time lows are characterized by a steady decline in price, most often with small pullbacks. All-time lows can be recorded on a monthly, weekly, or daily basis.

ATH is a handy way to see if you should invest in cryptocurrency now or if you should wait because the price of this or that coin has not fallen much from its historical maximum. But it is not worth looking only at this indicator and buying all coins with indicators ATH -90%, 95%, 99%! Many coins from this list may already be completely unprofitable. 

This indicator is definitely very handy, but you need to pay attention to other factors like the open or closed team of developers of the project, social networks of the project. More exchangers on which the coin is presented and many other factors. ATH is only a tool that allows you to successfully invest in a good coin at the time of its fall. To see the ATH of an asset, it is usually enough to switch the price chart to the maximum time frame.

Why it is happening?

The All-Time Low price is usually set when the asset enters the market. Investors may not trust new assets, and this is the reason why the price of a new asset remains low. Another possible reason why an asset sets a new All-Time Low is when a country (using a cryptocurrency) introduces new laws that make the new asset harder to use and it loses in value. The All-Time Low value can be used to show the minimum theoretical price at which an asset could be sold for.  An asset can reach All-Time Low several times a year, month, or day. When an asset reaches an All-Time Low, it can be seen as a loss of interest in the asset. When the price of an asset reaches an All-Time Low, it can be a signal to investors and lead to a large amount of selling, which in turn can lead to an even larger decline in the price of the asset. Sometimes the asset may not rebound or recover in price.

However, in crypto-currencies, historical lows are indicators of a bear market and usually lead to further declines. An example with bitcoin shows that when investors receive news that bitcoin is at an All-Time Low, they usually panic and start selling coins for better-performing ones. Many traders are also watching ATLs closely and using the low price as leverage to make decisions. With bitcoin, ATLs usually correspond to an event that triggers large-scale selling. For example, news about exchange hacks, government regulation, and news about forks are some of the causes of major ATLs. 

In short, ATHs are the highest price of an asset, while ATLs are a drop in the price of an asset. This can affect the asset in a negative or positive way. However, note that price corrections will always occur until the utility of each cryptocurrency settles to a stable price when volatility becomes zero.

Conclusions

Anti-Money Laundering

Anti-Money Laundering

6 min reading

Let’s improve your knowledge about crypto evolution by learning all things Anti-Money Laundering.

Anti-money laundery

Anti-Money Laundering (AML)

In recent years, bitcoin and other cryptocurrencies have emerged as prominent features of the global financial system. Due to their drastic growth, crypto-currencies and ICOs have become a very important form of personal wealth. A wide range of businesses has also emerged that recognize crypto-currencies as currencies to buy. The growth of the cryptocurrency markets has been fueled by major investors, so many are now including crypto-currencies in their investment portfolios. The online system around it opens the door to threat vulnerabilities, but its iterative nature prevents reversibility, especially in case of fraudulent transactions. In this article, we will explain what anti-money laundering (AML) is.

History of AML

A brief history of AML indicates that its regulation is largely influenced by the policies that shape the United States’ approach to money laundering. These include two pieces of legislation, the founding of the Bank Secrecy Act of 1970 and Title III of the Patriot Act of 2001, created to combat money laundering and terrorist financing, respectively. The BSA requires financial institutions to join the government in combating money laundering.

This then led to the creation of AML regulations such as the Money Laundering Control Act (1986) and the Anti-Drug Abuse Act (1988). However, it was not until the publication of Title III of the Patriot Act that the Know Your Customer (KYC) principle was implemented. This measure requires financial institutions to know who they are doing business with. The Patriot Act, on the other hand, was intended to eradicate terrorist financing through the financial sectors.

Features of cryptocurrencies

First and foremost, it is important to note that cryptocurrencies are virtual currencies that do not have a legal tender but serve as a medium of exchange, a unit of account, and a store of value. AML is a set of rules and regulations that combat money laundering. It aims to detect and interrupt any form of money laundering that usually occurs in three layers, namely placement, layering, and integration. Since cryptocurrencies are decentralized and do not involve any third party, they have caused some disruption. Criminal activities such as money laundering have emerged and criminals are hiding the sources of their crime. Terrorist groups are receiving supplies through this.

Crypto sector regulation

Regulations have been issued on how to prevent these financial crimes. But with the rapid growth of crypto-currencies, authorities have been slow to implement these rules and regulations, which has allowed criminal organizations to engage in money laundering. After spotting these threats, anti-money laundering regulators took action by issuing anti-money laundering regulations for crypto-currencies, while other regulators simply included crypto-currencies in existing anti-money laundering laws. Each country develops its own regulatory framework for banks and other financial institutions regarding AML compliance procedures. Recent changes in AML legislation show that in the next few years regulators in many countries will introduce new tools to increase the transparency of cross-border transactions and combat money laundering. Among such tools are publicly accessible beneficiary registries, PEP registries, new requirements for service providers with virtual assets, reduction of limits on prepaid cards, the inclusion of traders of precious metals and works of art into the list of monitoring subjects. In addition, many banks and financial companies are already imposing additional requirements for the presence of economic substance when opening an account. This requires the company to have employees a physical office, facilities (for trading companies), and relevant experience of the company’s employees and management.

How it works

The AML procedure includes both identifications, storage, and exchange of information (about users, their income, transactions) between organizations and agencies. AML essentially shows a user’s transaction history in blockchain that cannot be altered or falsified, which means it is a more reliable tool for protecting against illegal activity. Another advantage of this procedure is that AML scoring is automatic and the user does not participate in it. Sometimes AML-procedure is called KYT (know your transaction).

Both procedures are carried out with the help of special software. KYC software is similar to collecting information to compile a database. AML- the software uses more of a variety of algorithms to link the KYC database (and other sources of information) to all the wallet addresses in the blockchain. This forms the AML database, which is constantly updated as cryptocurrency wallets (new entries in the blockchain), and information about their owners is updated. Building, updating, and analyzing the AML database is a complex task because, in addition to the depth and number of links in this database, there are different numbers of participants, which for simplicity are grouped into so-called clusters. Each cluster is given a conditional risk of being involved in illegal activity as a percentage. 

KYC and AML

It is worth noting that although the KYC and AML procedures are independent of each other, their tools can be used in parallel – an example are the exchanges, most of which resort to the KYC procedure. But instead of collecting a lot of personal information to track financial flows and stop illegal activities, it is much more effective to use AML tools, which verify cryptocurrency addresses at the entrance. As a result, the user maintains both his privacy and the integrity of his crypto assets, because suspicious funds cannot enter his wallet. And at the same time, the illegal cryptocurrency remains in the owner’s possession, avoiding the transfer and subsequent blocking on the exchange. AMLBot is an example of AML tools.

In conclusion, the goal of AML is to eradicate terrorist financing through the financial sector. Since these AML regulations are still new, governments and regulators are still working on money laundering and publishing new regulations that could be implemented in the crypto market. This will help combat all forms of evil that could arise and maintain the integrity of cryptocurrencies.

Conclusions

Who are the maximalists?

Bitcoin maximalists

4 min reading

Discover all things considering Bitcoin maximalists and their differences from other crypto community members.

Bitcoin maximalist

Who are the maximalists?

The crypto industry is something more than the largest markets by capitalization, charts, and constant fluctuations in exchange rates. There are also so-called Bitcoin maximalists. This name often raises a lot of questions, so it’s time to clarify the situation.

Who are they?

Bitcoin maximalists are real people who differ from other members of the crypto community by a rigid ideology in support of a single cryptocurrency. This is the one who primarily values Bitcoin. Although this description is suitable for most users and cryptocurrency investors. In this term, “ideology” goes a little deeper. Usually, Bitcoin maximalists are not particularly concerned about the new and more advanced technologies of alternative cryptocurrencies. Therefore, altcoins or other cryptocurrencies seem superfluous to them. 

Bitcoin is everything

At the heart of this ideology is Bitcoin – the only cryptocurrency that is decentralized and has value, and Altcoin, according to many maximalists, hinders the development of Bitcoin. Even such popular projects as Litecoin, Ethereum, Monero, or the harmless Dogecoin are considered fraud. Moreover, bitcoin maximalists are sure that over time the world will switch to using a single cryptocurrency and it will be Bitcoin. Bitcoin is the most widely known cryptocurrency in the world, chiefly because it is valuable. But for a maximalist, it’s actually not a single reason to think of it as their rescuer. There are many other aspects that motivate users to become bitcoin maximalists. One of the main reasons maximalists keep bitcoin supportive is due to the fact it’s matchless

You don’t have to get permission to send payments through bitcoins. With bitcoins in your portfolio, nobody can expropriate your assets. Because of its anonymity, it is quite difficult to track anyone’s holdings. With bitcoin, the user fully owns his or her assets without third-party access. This makes bitcoin a sovereign asset. According to experts, today the crypto community is divided into two types of maximalists — ideological and principled. Let’s see who they are and what impact they have on the industry.

Ideological maximalists

Ideological maximalists believe that their digital money (usually Bitcoin) is “the truest cryptocurrency”, so all other altcoins are a priori scams that will never be able to take a leading position in the crypto market! Ideological maximalism emerged when Bitcoin first appeared on the crypto-currency market. That was a time when altcoins really didn’t represent any value. The past status of bitcoin has led to fanaticism, which was justified only by the huge growth of this cryptocurrency. However, over the past few years, the cult of bitcoin among ideological maximalists has come to naught, because new cryptocurrencies such as Ethereum, began to offer truly innovative features and won huge user attention in the market.

Principled maximalists

Tuur Demeester, editor-in-chief of Adamat Research, gave an example of principled maximalists. In April 2017, he wrote: “Due to various network effects, I am taking the maximum position in cryptocurrency, believing that one protocol will eventually win over 80% of the market. With this in mind, I currently have a binary view of the ecosystem: either Bitcoin or Ethereum will win.”

Judging from his words, principled maximalists differ from ideological ones by three criteria. First, principled maximalists believe that long-term cryptocurrency maximalism will arise because of the network effects power, and not because a specific cryptocurrency is supposed “one true”. Secondly, altcoins are not canceled and are not considered scams. 

They provide some value, so the position of the principled maximalists is that the top cryptocurrency will capture more than 80% of the market in the long run, and not all 100%. And third, a long-term position can be captured by any cryptocurrency, not just Bitcoin.

Many people are wondering how Maximalist affects the bitcoin market. Maximalism is a mark of trust and faith blindly. Any currency not controlled by anyone just takes off based on trust and faith. Bitcoin maximalists play a highly important role in supporting its general growth. Some people even say Bitcoin’s export growth is associated with its loyal maximalist. Although this is strongly speculative and no sources have confirmed this news.

However, the main rule of bitcoin maximalists is that only Bitcoin can be used to create something new, all other methods are unethical. Nowadays, new cryptocurrencies are developing on the market and are improving every day. Hence it gives us hope that true decentralization is possible when there are many competing projects of money and not a single one.

Conclusions

What is Shitcoin?

Shitcoin

4 min reading

You’ve heard about shitcoins and are curious about it? Let’s find out what about it

What_s shitcoin

What is Shitcoin?

First of all, ShitCoins are coins with low capitalization and completely unclear prospects. In general, this is considered a pejorative term that is used to describe a cryptocurrency that has become useless. It is a cryptocurrency with no purpose, value, or future. Despite the lack of technological innovation, shitcoins appear almost every day. Some people call them cryptocurrencies, others say that they are altcoins or altos. And of course, they have their advantages – fast transaction speed and lower rates, but they do not have recognition and a memorable name. Without it, they are doomed. Then why are they quite popular?

ShitCoins: who needs them and why?

Some believe that shitcoins are in no demand among users, then let’s present some examples: the coin “Useless Ethereum Token” collected about 40 thousand dollars at the ICO in 3 days, but the FUCK token – 30 thousand dollars in half an hour. Of course, not all shitcoins achieve such success, but there are exceptions. Some experts believe that cryptocurrencies lead to situations where people lose their sense of value.

Some people are not afraid to just take and send a few tens or hundreds of dollars to the ICO, which are not in their pocket or in a bank account but are transferred to cryptocurrencies. Therefore, users can not hesitate to spend their digital funds to support comic projects. People create their coins as an experiment, for it brought them further income.

Shitcoin History

There is a huge amount of ShitCoins, even counting them will be very difficult. Some coins are famous only by their creators and the owners of the platforms on which they were created (but this is not accurate!). Shitcoins appeared after the first Bitcoin cryptocurrency creation. Today, there are people who use various “generators”, for example, Forkgen, and keep creating their own useless cryptocurrencies. Therefore, such tokens as PotCoin – coins for buying marijuana products and Dirty Coin – a coin for paying for export services appeared on the market. Important to know that the list of crypto-currencies is updating every day with the development of the industry.

Let’s talk about where the word Shitcoin came from. The first time the word “Shitcoin” appeared on the BitcoinTalk forum was back in 2010. One user wrote an article about cryptocurrency and this word was first used. Since then, it has been a hot topic in the crypto-currency community, but the author of the term and the history of its origin are still unknown.

How to identify shitcoin

Here are some tips on how to spot shitcoins and how to avoid problems in the future. The first sign might be when you visit a project you like, check the saving history and if there are infrequent updates and the last save was two months ago – you are facing a bad coin. If the coin only offers a store of value and has no integration with important sites where you can buy something with it, then it’s a bad coin too. If the coin’s code is a fork of another coin with no significant tweaks or changes in functionality, it’s a bad coin. If the project has a fancy website with the words “Decentralised” or “Dependable” on it, it’s very likely a bad coin. If the project doesn’t have a development team or a group of individual developers, or if the team is anonymous at all, it’s very likely a bad coin. If you find all or most of these signs, sell them now. Such coins have no value and will soon be forgotten.

Conclusion

However, during the crypto-currencies development, a huge number of useless and forgotten coins have been formed. It is also worth noting that new tokens are launched every day, and it is not an easy deal to determine which one will bring profit since more than 8,000 crypto-assets exist today. Only a detailed analysis and independent search for promising projects facilitate avoiding a “promising asset with low liquidity”.

Conclusions

Elon Musk and crypto-currency industry

Elon Musk

5 min reading

That’s interesting what impact does Elon Musk have on the crypto world, and why he and other manufacturers are investing so much?

Elon Musk

Why are Musk and other manufacturers investing
so much?

Since its inception, bitcoin has always been at the top of the crypto-currency ladder. Other cryptocurrencies have been created, all with the goal of surpassing bitcoin. But since then, no one has succeeded. Here is a well-known businessman investing in bitcoin, taking it to another level in the crypto-currency market. Why this decision? This article will tell you more about it.

Elon Musk and the crypto industry

Elon Musk, the owner of the well-known electric car company Tesla, recently invested $ 1.5 billion in bitcoin. This has led to an increase in the value of this cryptocurrency. Based on his prediction, he believes that cryptocurrencies will soon be used for payments, given the rapid development of technology. He also invested in this cryptocurrency to diversify the payment methods for purchasing electric vehicles. However, Musk did not specify when he will start accepting these payments or in which countries buyers will be able to pay for cars using cryptocurrencies. 

BTC investors 

It would be interesting to note that Musk is not the only multi-billionaire to add a Bitcoin record. We also have MicroStrategy, an American software company that bought about $ 250 million worth of bitcoins and is now valued at $ 3.1 billion. We also have top Wallstreet investors like Stanley Druckenmiller and Paul Tudor Jones who have adopted Bitcoin.

Why?

So what are the reasons that prompted him, like many other industries, to get into cryptocurrency? As part of the plan, Tesla says it will invest in alternative reserve assets, including digital assets and other assets. His bitcoin investment is due to the fact that he can acquire and store digital assets from time to time. 

Besides, Tesla is considering adopting bitcoin as a form of payment for its products in the future. 

With a multi-billion dollar company with cryptocurrencies likely to dominate in the near future, Tesla’s investment is a way to diversify its cash and cash equivalents. Tesla’s investment is a vehicle for diversifying cash and cash equivalents to give the industry some flexibility and thus maximize cash returns that are not required to maintain adequate liquidity.

Prospects

Moreover, for many proponents, cryptocurrencies represent the future of payment systems. Elon Musk expressed the opinion that investing in bitcoin is not much better than owning regular money, but even that small difference made it the best asset for keeping savings. Musk sees Bitcoin as a good thing as it is poised to gain widespread acceptance among mainstream financiers. 

Investing in cryptocurrencies can now be compared to accumulating wealth. However, this does not guarantee that Tesla will be able to avoid the depreciation of its investment in Bitcoin stock over the life of the investment. If the value of bitcoin continues to rise, the profits generated from the position could generate much-needed revenue for the electric vehicle manufacturer.

In short, the reason Tesla went into cryptocurrencies is that its investment policy is being updated, which gives it the ability to diversify and maximize its return on untapped cash. Cryptocurrency is also called the money of the future.

Conclusions